Ethington v. General Electric Co.

575 F. Supp. 2d 855, 2008 U.S. Dist. LEXIS 76429, 2008 WL 4183900
CourtDistrict Court, N.D. Ohio
DecidedAugust 13, 2008
Docket1:08-gd-50209
StatusPublished
Cited by43 cases

This text of 575 F. Supp. 2d 855 (Ethington v. General Electric Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ethington v. General Electric Co., 575 F. Supp. 2d 855, 2008 U.S. Dist. LEXIS 76429, 2008 WL 4183900 (N.D. Ohio 2008).

Opinion

MEMORANDUM OF OPINION AND ORDER ON PLAINTIFFS’ MOTION TO REMAND

DAN AARON POLSTER, District Judge.

Pending before the Court is the Motion to Remand (the “Motion”) filed by Plaintiffs Claudia and Harold Ethington on January 15, 2008. (ECF No. 6.) For the following reasons, Plaintiffs’ Motion is GRANTED.

I. BACKGROUND

The above-captioned case is one of myriad cases pending before the Court as a result of transfer pursuant to the multidistrict litigation entitled In re: Gadolinium-Based Contrast Agents Products Liability Litigation, Case No. 1:08-GD-50000. The plaintiffs in these MDL cases are generally individuals (or estates of deceased individuals) who developed a disease known as Nephrogenic Systemic Fibrosis (“NSF”) following the administration of products manufactured and/or sold by one or more of the named defen *857 dants in these cases. After Claudia Ethington developed NSF following the administration of “Omniscan” tm (gado-diamide) in connection with magnetic resonance imaging she underwent on January 12, 2006, the Ethingtons filed their Complaint in the Superior Court of New Jersey, Mercer County (Law Division) alleging several claims under New Jersey state law including, among others, strict products liability, negligence, and breach of warranty. The Ethingtons filed their Complaint in the New Jersey state court on Friday, December 14, 2007, and provided a courtesy copy of the Complaint to the Defendants the same day.

The next business day, Monday, December 17, 2007, Defendants General Electric Company, GE Healthcare Inc., and GE Healthcare Bio-Sciences Corp. (collectively “the GE Defendants”) collectively removed the case to the United States District Court for the District of New Jersey, citing federal diversity jurisdiction as created in 28 U.S.C. § 1332(a), and the federal removal statutes, 28 U.S.C. §§ 1441(b) and 1446. (ECF No. 1.) Critically, it would have been virtually impossible for the Ethingtons to perfect service of process in less than one business day, due to the unique way New Jersey state courts process newly-filed complaints. New Jersey Rule of Civil Procedure 4:5A-2(a) mandates that a plaintiff filing suit in Superior Court must await issue of a “Track Assignment Notice” (or “TAN”) number from the clerk’s office before the plaintiff is permitted to serve process on a defendant. See N.J. R. Civ. P. 4:5A-2 (providing that “[w]thin ten days after the filing of the complaint, the court shall mail notice of track assignment to the plaintiff. The plaintiff shall annex a copy of the notice to process service on each defendant.”). (See also, ECF No. 30-3, Pis.’ Rep. Mem., Ex. B to Aff. Dec. of Mitchell M. Breit, Decision and Order in In re Accutane, No. ATL-L-3156-05-MT (N.J.Sup.Ct. Nov. 30, 2007) (J. Higbee) (“[U]nder R. 4:5A-2, a plaintiff must wait for a TAN to be issued before they are permitted to serve process on a defendant.”).)

The Ethingtons filed their timely Motion to remand the case back to New Jersey state court on January 15, 2008, along with the accompanying brief in support. (ECF No. 6.)

After some litigation over the motion to transfer the case to the MDL, a motion to vacate the MDL Panel’s Conditional Transfer Order, and a motion to stay the litigation pending the MDL Panel’s decision, (see generally ECF Nos. 13-24), the case was transferred to the undersigned pursuant to an MDL Panel Order on June 23, 2008 (ECF No. 28). The GE Defendants filed their brief in opposition to the Motion on July 9, 2008. (ECF No. 29.) The Ethingtons accordingly filed their reply brief on July 23, 2008. (ECF No. 30.) Thus, the Motion is now ripe for the Court’s consideration. 1

*858 II. LAW AND ANALYSIS

A. Overview

The GE Defendants removed the instant case citing diversity jurisdiction pursuant to 28 U.S.C. § 1332. For purposes of § 1332 diversity jurisdiction, the Ething-tons are citizens of Utah; Defendant General Electric Company is a citizen of New York and Connecticut; and Defendants GE Healthcare Inc. and GE Healthcare Bio-Sciences Corp. are citizens of Delaware and New Jersey. (ECF No. 6-2, Pis.’ Mem. in Supp. of Mot. to Rem., 2; ECF No. 29, Defs.’ Opp. Br., 3.) The parties do not dispute that complete diversity exists, and that an amount in excess of $75,000 is in dispute. Thus, the only question is whether removal by the GE Defendants was permissible.

Title 28, United States Code Section 1441 provides that a defendant may remove a case from state to federal district court if the federal courts have original jurisdiction. Notably, however, a defendant’s right to removal is not unlimited. Title 28, United States Code Section 1441(b) provides that cases in which federal jurisdiction is based only on complete diversity “shall be removable only if none of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” Id. This rule is often called the “forum defendant rule.” The forum defendant rule generally prohibits defendants from removing a case to federal district court when the concerns that underpin diversity jurisdiction (i.e. prejudice to out-of-state defendants) are not present because the plaintiff chose to file suit in the defendant’s own home state courts. See Lively v. Wild Oats Mkts., Inc., 456 F.3d 933, 939-40 (9th Cir.2006) (observing that “the purpose of diversity jurisdiction is to provide a federal forum for out-of-state litigants where they are free from prejudice in favor of a local litigant,” but that “the need for such protection is absent ... in cases where the defendant is a citizen of the state in which the case is brought.”) (citations omitted). See also, DeAngelo-Shuayto v. Organon USA Inc., 2007 WL 4365311, at *3, 2007 U.S. Dist. LEXIS 92557, at *7-8 (D.N.J. Dec. 12, 2007) (J. Chesler) (citing S.Rep. No. 1830, 85th Cong., 2d Sess., reprinted in 1958 U.S.Code Cong. & Admin. News 3099, 3102 (explaining the “purpose of diversity of citizenship legislation ... is to provide a separate forum for out-of-state citizens against the prejudices of local courts and local juries by making available to them the benefits and safeguards of the federal courts”)).

Here, the GE Defendants removed the above-captioned case from New Jersey state court to federal district court in New Jersey solely on diversity jurisdiction. This, despite the fact that two of the three Defendant entities are New Jersey citizens for diversity purposes, 2 and are therefore so-called “forum defendants,” i.e. citizens of the forum in which the state court action was first filed. Accordingly, the ulti *859

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575 F. Supp. 2d 855, 2008 U.S. Dist. LEXIS 76429, 2008 WL 4183900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ethington-v-general-electric-co-ohnd-2008.